49Scaling factor for rent

49 Scaling factor for rent

49 Scaling factor for rent

(1) This clause provides for the scaling factor referred to in clauses 45–48 for the financial year commencing on 1 July 2017 and for each subsequent financial year.

(2) The scaling factor for the financial year commencing on 1 July 2017 is 1.16.

(3) The scaling factor for each subsequent financial year is to be the scaling factor for the immediately preceding financial year plus half the CPI movement.

Note.

This formula will result in a reduction in the scaling factor in the case of a downward CPI movement.

(4) The CPI movement is to be calculated as follows—

where—

C1 represents the CPI for the December quarter for the calendar year immediately preceding the financial year for which the scaling factor is to be determined.

C2 represents the CPI for the December quarter for the calendar year immediately preceding the calendar year referred to in the definition of C1.

(5) In this clause—

CPI means the index known as the Weighted Average of Eight Capital Cities: All Groups Consumer Price Index that is published quarterly by the Australian Statistician.